Definition
Carried Down (C/D) is an accounting term used to indicate that a figure, balance, or total is brought forward from one page or column of an account to another. This abbreviation helps maintain continuity in records and ensures that tallies are consistent across financial documents. In the dance of digits, where every move counts, “Carried Down” ensures that no financial step is missed, making it the tango of transaction tracking.
Application in Accounting
The usage of C/D is common in ledgers, journals, and other accounting books where entries span multiple pages or columns. For instance, if the debits side of a ledger is filled up, the total may be carried down to the top of the next page, ensuring seamless continuation. Call it the financial cliffhanger that always resolves on the next page!
Why It Matters
In the thrilling narrative of accounting, “Carried Down” plays the vital role of ensuring the storyline is accurate and continuous. This abbreviation is pivotal in ensuring that financial records are not only correct but are also traceable and verifiable. Think of it as the bookmark that helps you flip right back to where you were in the epic saga of financial transactions.
Etymology
The term “Carried Down” has its roots tucked in the practice of hand-written accounting ledgers, where space constraints often necessitated the transfer of balances from one page to another. This term ensures the story of numbers flows smoothly like a well-written novel, from page to page, without losing the plot.
Related Terms
- Carried Forward (C/F): Indicates that a balance or figure is to be moved forward to the next page or column. Like its cousin C/D, it keeps the account story alive but moving into the future.
- Balance Brought Forward (B/F): The opposite of carried forward, indicating that this number starts the show on the current page or ledger, having been handed the baton from a previous accounting session.
- Debit (Dr): A term representing an entry on the left side of an account, increasing assets or expenses, and decreasing liabilities, revenues, or owner’s equity.
- Credit (Cr): Right-side entries that do quite the opposite, diminishing assets or increasing liabilities—it’s the yin to Debit’s yang.
Books for Further Study
- “Accounting Made Simple” by Mike Piper - A straightforward guide to basics of accounting, including how carried values function.
- “Financial Shenanigans: How to Detect Accounting Gimmicks & Fraud in Financial Reports” by Howard Schilit - Although it’s about detecting fraud, understanding the integrity of entries like C/D is also covered.
- “The Joy of Accounting: A Sweeping Tale of Numbers & Narratives” by Monty C. Ledger - A fictional yet educational journey through the world of accounting, highlighting practices like carrying down and forward.
Carried Down may not be the hero in the thrilling world of accounting adventures, but it certainly is one of the crucial supporting characters, pivotal in maintaining the narrative integrity of financial storytelling. So, next time you see C/D, tip your hat to the unsung hero of continuity in accounting narratives!
